Eight simple ways you can save a whole lot of cash

In the unlikely event you wake up to discover you’ve won $25 million in Lotto prize money, you’ll probably want to skip this article.

For everyone else looking to save a few bucks here and there however (adding up to quite a bit of savings in the back pocket), there are plenty of quick and simple things you can do.

Abigail Koch, Household Savings expert from comparethemarket.com.au, says it’s often the things we don’t think about that can quickly add up.

“From your car insurance premiums to toll road charges, it’s easy to fall into the trap of paying unnecessary fees and charges across a range of everyday products and services,” she says.

Here are some things to keep an eye on:

Paying your car insurance in installments

Admittedly it can often be tough finding that extra grand or so when your annual car insurance bill comes in, but failing to adequately plan and save for the bill can penalise you substantially, says Koch.

“When comparing eight major car insurance brands, we found that consumers could save up to $160 a year by choosing to pay their premiums in one lump sum rather than every month.”

Not understanding the criteria for the Medicare Levy Surcharge

What is the Medicare Levy Surcharge (MLS) and how does it apply to you?

MLS is a levy paid by tax payers who do not have private hospital cover and who earn above $90,000 as a single, or $180,000 as a couple. Those who don’t do their due diligence could be throwing away $900 a year in extra tax and be none the wiser, says Koch.

“These thresholds might sound high, but given Australia’s median household income is $84,032, more people than you think may be hit by this charge.”

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Remaining inattentive to common credit card fees and charges

Yep, you know additional fees are going to come knocking if you don’t pay your monthly bill on time, but did you know your bank could also be charging you for hard copies of statements if you already receive them via email?

“Additionally, if you don’t use your card for an extended period of time or fail to meet the spending limit for the year, you may be charged an extra $2 - $3 per month,” says Koch.

Comb over your statements regularly to work out exactly what you’re being charged and if you don’t like it, vote with your feet.

Leaving appliances on standby

We’re all guilty of doing it, but it pays to consider exactly how much more you’re paying for your electricity if you keep appliances plugged in and switched on. In fact, standby power is responsible for up to 10 per cent of your power bill, says Koch.

“Therefore, if you’re paying an average of $300 per quarter for your energy, which accumulates to $1,200 a year, that’s a potential saving of $120 annually.”

Enjoying rideshares without much thought

Had a few drinks (and a few more) on a Friday night? It’s sensible to get a rideshare home, but it’s even smarter to work out exactly what you’re going to be charged and when (best work this out when you haven’t had a few drinks).

For example, in addition to increasing rates during busier times, Koch says some rideshare businesses will also charge customers if they decide to cancel their ride after a two-minute window.

“If your driver cancels after waiting for at least five minutes at you pickup location, they will also charge you extra,” she adds.

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Believing you know the true cost of road tolls

Metropolitan tolls are bad enough (Sydney, we’re looking at YOU) but aside from the advertised cost of the toll itself, it’s worth remembering there are often additional fees charged.

Koch recommends keeping an eye out for statement fees, overdue interest charges and non-return tag fees – all of which can quickly add up.

Also believing advertised hotel rates

Dreaming of a little stress-free getaway at that palace that came with an unbelievably good rate? Proceed with caution; while the advertised rate might have been as cheap as chips, there is a chance you’ll get stung with additional charges for Wi-Fi, parking and even concierge services.

Always call the property before you book and go over all fees and charges, and where possible, get them to email the details to you so that you have it in writing.

Enjoying brunch on Sundays

We’re not going to get into any ‘smashed avo’ debates here; but by enjoying that Aussie classic (or any other meal) with your friends on a Sunday or public holiday, you could be forking out quite a bit more than you normally would than if you had the lunch on a Saturday.

“Aussies could be shelling out 10 – 15 per cent more for their purchases if they aren’t careful,” says Koch, explaining the additional fee is to help cover the restaurant staff’s higher penalty rates.

Of course, no matter what kind of situation you’re in, it’s crucial for consumers to question the surcharges they receive and understand why they were stung with extra costs in the first place, she says.

“Knowledge is power, so talk to your energy provider, the hotel staff and even your bank and gather as much information as possible to avoid paying hundreds of dollars a year in unnecessary fees.”